Myntra to sell private labels on Jabong and vice versa to revive latter's business

As per plans, Myntra will roll out its entire bouquet of private brands at Jabong, which already accounts for 20% of Myntra’s business.Writankar Mukherjee | ET Bureau | December 20, 2016, 08:46 IST

Online fashion retailers Myntra and Jabong are integrating their private brand portfolios to push the trifling private label business at Jabong after the former acquired it barely five months back. Online fashion retailers Myntra and Jabong are integrating their private brand portfolios to give a boost to the trifling business at Jabong after the former acquired it around five months ago.

As per plans, Myntra will roll out its entire bouquet of private brands at Jabong, which already accounts for 20% of Myntra’s business. And Jabong too will scale up its private brands, which would be launched at Myntra at a later date. At present, private brands accounts for just 2-3% of Jabong’s revenue and it wants to scale it up to 9-10% between the two platforms by next year.

“Jabong has just started selling two of Myntra’s private brands -- Roadster and All About You -- and has received encouraging response. HRX will be the third brand to be sold on Jabong from next month. Eventually, all 12 brands of Myntra will be launched once business gains traction,” said Jabong’s chief business officer Rahul Taneja.

Taneja said Jabong too is trying to revive its private label business, piggybacking on Myntra’s processes and platform. It would start with women's wear brand Sangria. The focus on private labels will boost Jabong’s margins and help to cut down its losses. “Jabong, for the first time, reported an operating profit in October when sales grew 50%. Private brands will be one of the way we expect to boost profitability, as well as try out various means to induce our existing customers to shop at the platform without any discount,” said Taneja.

Between Jabong and Myntra, there are around 400 brands that overlap on both the platforms. Taneja said this will continue since the selection is completely different as both the platforms have different target consumers and geographies. “While Jabong’s main revenue source is North and East, Myntra is big in South and West. Similarly, Jabong has more women consumers and first-time shoppers, while Myntra is more men-oriented and have affluent consumers. This is also the reason why both the platforms will be run independently,” said Taneja.

However, Jabong is now using Flipkart’s logistics arm Ekart for all deliveries, which has increased its efficiency. “We are leveraging the partnership with Myntra while talking to the brands and will be replicating some of their application features and technologies for Jabong,” said Taneja. Myntra acquired Jabong for about $70 million in July, piping bidders such Future Group and Snapdeal.